Minister Ngafuan believes that the administration is making significant strides by deliberately investing in programs that impact the people.
By Lewis S. Teh
Monrovia, November 20, 2024: The Liberian government has announced the allotment of US$52.9m, including US$37.6m, in the draft 2025 budget to build and rehabilitate roads across the country.
Liberia’s Finance Minister, Mr. Augustine Kpehe Ngafuan, announced the allotment during a press briefing on Tuesday, November 19, 2024, at the Ministry of Information on Capitol Hill.
Minister Ngafuan said investing in road infrastructure is the key to unlocking Liberia’s economy and providing access to other parts of the country.
“To this end, we have allocated US$52.9 million, including US$37.6 million for the rehabilitation of major roads,” the Finance Minister stated.
When approved by the Legislature, Ngafuan suggested that it would encompass the rehabilitation of rural roads and the construction of bailey bridges across the country.
In the envelope, Minister Ngafuan revealed that there is counterpart funding for ongoing works on key road corridors.
He named the road corridors the Saclepea—Zwedru segment of the SECRAMP project, the Sanniquellie—Loguatuo highway, and the Salayea—Beyan Town section of the Gbarnga—Mendikorma highway.
Minister Ngafuan disclosed that an additional US$15 million has been set aside for improving other infrastructure, and the Pliable Roads Program launched earlier this year.
He said the budget submission was done under Section 17.1 of the 2019 Amendment and Restatement of the Public Financial Management Act of 2009.
The total revenue envelope of the Draft National Budget for FY2025 is projected at US$851.8 million.
It comprises Core Revenue of US$833 million, or 97.8%, and Contingent Revenue of 18.8 million, or 2.2%.
Of this amount, Domestic Revenue constitutes US$791.76 million or 93 percent of the total envelope.
This includes Tax Revenue of US$633.72 million or 80 percent of domestic revenue and non-tax Revenue of US$138.5 million or 17.4 percent.
External resources amount to US$60 million, or 7.0 percent of the total revenue envelope, to be sourced from the World Bank (US$40 million) and the European Union (US$20 million).
This represents a 50 percent increase in external resources from FY2024.
“In the FY2025 Draft National Budget, we are projecting an increase of 15.3 % over the FY2024 Recast budget of 738.9 million,” he explained.
“The increase in the resource envelope is attributed to the steady performance of domestic revenue, especially taxes on income and profits, goods and services, and international trade,” he continued.
The Liberian economy is projected to grow by 5.8 percent in 2025, up from a forecast of 5.1 percent in 2024.
The 2025 projections are based on strong performances in the mining and panning sector (8.5 percent), the manufacturing sector (6.9 percent), the agriculture & fisheries sector (5.2 percent), and the services sector (5.0 percent).
According to Minister Ngafuan, the top two contributors to the GDP in 2025 will be the services sector, with 38 percent, and the agriculture and fisheries sector, with 29 percent.
The rest will be mining and panning at 19.2 percent, forestry at about 8 percent, and manufacturing at 6 percent.
The growth forecast for the period of the ARREST Agenda (2025-2029) remains promising, with an average growth rate of 5.9 percent.
This upward performance will be influenced by investments in public-sector projects and the mineral sector, which will be supported by structural reforms in key sectors.
They include energy, trade, transportation, and financial services.
From all indications, Minister Ngafuan believes that the administration is making significant strides through deliberate actions to invest in programs that have real impacts on the current and future well-being of the people.
Consequently, in this proposed budget, he states that the government is increasing the proportion of Public Sector Investment Program (PSIP) expenditure from US$67.4 million in FY2024 to US$98 million in FY2025.
He indicated that this represents a 54 percent increase.
As a result, the ratio of PSIP expenditure to the overall budget will expand from 9 percent in FY2024 to 12 percent in FY2025.
Eighty-six percent of PSIP allocations totaling US$87 million is dedicated to multi-sector projects under the ARREST Agenda for Inclusive Development (AAID), the government’s development plan for 2025-2029, which is set to launch in the next few weeks.
Ngafuan revealed that the government has spent almost US$7 million on PSIP projects in education.
Of that amount, US$4 million will be used to renovate and expand school facilities operated by the Ministry of Education, the Monrovia Consolidated School System, and others.
“We have also allocated funds to ensure that the Digital Transformation Program, which is set to continue for 2025,” he continued.
Under the Rule of Law, the Finance Minster stated that a total of $4.4 million is proposed for various projects.
They include the ongoing renovation of military housing and Liberia National Police barracks located on Horton Avenue in Monrovia.
Under Sanitation and health, he said the government is proposing US$14 million for major projects, including drug revolving funds at community pharmacies, electricity, and capacity expansion at the John F. Kennedy Memorial Hospital, reconstruction of the C.H. Rennie Hospital in Margibi County, and the conversion of Jackson F. Doe Memorial Hospital in Nimba County from a regional referral facility to a national referral hospital.
“And, in Tourism, we are seeking legislation to create an autonomous tourism board; hence, propose US$500,000 for various interventions, including the development of plans and marketing strategies for the tourism sector to enable us to leverage our vast tourism potential,” he said.
